Lianhua Supermarket Holdings Co. Ltd. announced Friday in Hong Kong that their net profit exceeded 100 million RMB (about 12.195 million US dollars) in 2004 interim results.

Chairman of Lianhua Supermarket Wang Zong-nan said the company's profit attributable to shareholders surged by 26 percent to over 100 million RMB when announcing the company's interim results at a press conference.

The company has started the plan of implementing flagship stores which is hoped to help increase the profit rate.

"In the second half of 2004, Lianhua Supermarket will continue to implement the regional concentration strategy and expansion strategies in the future. In view of the immense potential and challenges brought forth by China's accession into the World Trade Organization, we will mainly focus on the nationwide development in eastern part of Chinese mainland with Shanghai as its focus," said Wang.

During the period under review, the company implemented its establishment plan for flagship stores.

According to Wang, seven stores were preliminary selected as flagship stores for its three core business segments. The company will continue to enhance and improve key performance indicators of these selected stores within three years, study the development trend for different segments and form the driving force for the sustainable growth of the company.

A network of flagship stores will be established by the company in key cities in the future. This will in turn upgrade the image of outlets, establish flagship stores as a model for the outlets in the peripheral area, increase the operating efficiency, stock control and market penetration for the outlets in the peripheral area.

Flagship stores will help the company to increase profitability, as well as consolidating and strengthening the company's competitive position in the market.

Lianhua Supermarket's H share was listed on the Stock Exchange of Hong Kong Limited in June 2003.

Source: Xinhua